Pricing Policy of Hotel Business in Georgia

September 25, 20171,126 Views

In her interview for the Business Morning, Nino Rukhadze, Regional PR & Marketing Director for Cushman & Wakefield Georgia, talks about from which countries international visitors arrive in Georgia, the purpose of their visits and hotel business development paces in Georgia.

-Today both international and Georgian brands actively develop hotel construction projects. What factors have made Georgian hotel industry interesting and attractive?

-Over the past years Georgia and Tbilisi have grown into a very competitive location in the region compared to other countries and cities. Naturally, this is the result of economic development of the country. We should not also forget about proper PR and marketing campaigns that Georgia carries out in relation to other countries for valuable positioning of tourism potential. I believe this is an important and key factor that has attracted so many tourists to Georgia.

-Besides number of tourists, apparently, investors also take into account averaged sales price and coefficient of workload to calculate potential revenues…

-Naturally, we imply international brands in high-ranking hotels segment and not only. Averaged price is 177 USD, while the price ranges from 120 USD to 135 USD in medium-class hotels. Under the existing plan, about 10 000 beds and 6 000 suites will appear in Georgia in addition. I believe competition will really increase and developers and hotel operators will have to correct their pricing policy.

-It is frequently said that prices of hotel services are very expensive in Georgia for both domestic and international visitors. According to current indicators, there are 27 000 beds in Georgia and 10 000 new ones will be added. Which hotels have opened and how the industry has changed?

-I will name a short list of the international brands that enter Georgia: Intercontinental, Radisson BLU Telegraph, Park in Bau Radisson, Hilton, Hilton Gardening, Mox, Ramada and so on. Sheraton Metechi Palace will resume operation after rehabilitation works.

-In which regions will similar brand hotels be built?

-Golden Tulip international brand plans to unveil a hotel in Telavi. Best western hotels have opened in Kutaisi and Batumi. The company plans to expand business in 16 other cities, including in Telavi. Consequently, both international and domestic brands will build hotels in all regions of Georgia.

-What changes should we expect on this market?

-Quality is an important factor. Healthy competition, top quality services ensure a revision of prices. Therefore, the market will eject uncompetitive players.